What are NFTs and How to Best Protect Them

The popularity of NFTs, or Non-FungibleTokens, has increased in the past few months as their trading volume reached $11 billion during the third quarter of 2021. NFTs are now a popular target for hackers, just as cryptocurrencies have. Investors place billions in this asset. In the long run, it can prove costly to use weak authentication measures to protect digital assets such as NFTs.

NFTs are a blockchain-based method of claiming ownership of digital assets. Digital artworks are the most common application of NFTs. Investors can purchase photos, digital renderings or paintings, as well as memes online. However, NFTs do not just include art and visual media as they also cover music, trading cards, collectibles and sports highlights, virtual fashion, and other pop culture items online.

NFTs are not fungible or exchangeable like traditional cryptocurrencies. NFTs are unique because they have a unique digital signature created with distinct identifying codes on the blockchain that cannot be duplicated.

Hackers can also target digital assets such as NFTs. Bad actors can make digital wallets and exchanges a lucrative target if they have easy access. It can be compromised when weak authentication practices are used, such as using passwords to secure accounts instead of using more secure authentication methods like kyc authentication.

A more secure authentication method such as FIDO2 key passwordless authentication can help protect digital assets like NFTs against hackers. FIDO2 protocol uses a private key, public key cryptography. Users are prompted to enter their biometric information like their fingerprint and face scan during registration. The device then stores the biometric in a secure enclave combined with the device, which acts as the private keys for unlocking the account. To access their accounts, users will only need their biometric after registering.

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